During the quarter, one U.S. Treasury Bill matured in the amount of $830,000.
No new investments were purchased.
Two-year Treasuries yielding 4.25% at the beginning of the quarter ended lower at the end of the quarter at 3.89%, which was a decrease of 36 basis points for the quarter.
As of March 31, 2025, the Weighted Yield to Maturity on the Managed Investment Portfolio was 4.40%.
At the end of this quarter, the Weighted Average Maturity of the Managed Investment Portfolio was 1.39 years.
The Federal Open Market Committee (FOMC) meets approximately every six weeks and determines the level of the Federal Funds Rate. At the March 19th meeting, the FOMC voted to maintain the target range for the federal funds rate at 4¼ to 4½ percent.
Summary from the March 19th meeting:
"Recent indicators suggest that economic activity has continued to expand at a solid pace. The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid. Inflation remains somewhat elevated.
The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty around the economic outlook has increased. The Committee is attentive to the risks to both sides of its dual mandate.
In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities. Beginning in April, the Committee will slow the pace of decline of its securities holdings by reducing the monthly redemption cap on Treasury securities from $25 billion to $5 billion. The Committee will maintain the monthly redemption cap on agency debt and agency mortgage-backed securities at $35 billion. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.
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Council Information
FY 2024-25 3rd Quarter Investment Report
March 31, 2025
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.”
Finance staff hired Optimized Investment Partners in May 2023 to help improve the investment returns for the city and to ensure compliance with California Government Code by ensuring safety of principal and sufficient liquidity for operations. Ongoing portfolio management activity will continue to be performed in partnership with Optimized Investment Partners, the City Manager, and the Administrator Services Director.
Considering the projected timing of cash receipts and disbursements and the structure of the Pooled Investment Portfolio, the City will be able to comfortably meet overall cash flow needs over the next six months.
If you have any questions, please feel free to contact me at 707-665-4236. 532 of 539
Par Value (1) Market Value (2) Book Value (3)
Cash & Investments Held by City
Investment Portfolio
Managed Investments
U.S. Bank Custodial Cash Account $ 47,214 $ 47,214 $ 47,214 0.32% U.S. Treasury Bill/ Note 800,000 804,656 811,263 5.42%
Federal Agency Bond 1,600,000 1,575,720 1,548,133 10.34% Certificate of Deposit 3,195,000 3,220,572 3,195,000 21.33% Managed Investments Subtotal $ 5,642,214 $ 5,648,161 $ 5,601,610 37.40% Pooled Investments
State of CA Local Agency Investment Fund $ 6,437 $ 6,437 $ 6,437 0.04% CAMP 8,921,136 8,921,136 8,921,136 59.56%
Sonoma County Investment Pool 33,362 33,362 33,362 0.22% Pooled Investments Subtotal $ 8,960,935 $ 8,960,935 $ 8,960,935 59.83% Investment Portfolio Subtotal $ 14,603,149 $ 14,609,097 $ 14,562,545 97.22% Cash/Time Deposits $ 415,818 $ 415,818 $ 415,818 2.78%
Funds Available for Investment $ 15,018,967 $ 15,024,915 $ 14,978,363 100.00% Accrued Interest $ 24,319 $ 24,319 $ 24,319
Total Cash & Investments Held by City $ 15,043,286 $ 15,049,234 $ 15,002,682 Notes:
1. Par value is the principal amount of the investment on maturity.
2. Market values contained herein are received from sources we believe are reliable; however, we do not guarantee their accuracy.
3. Book value is par value of the security plus or minus any premium or discount on the security.
City of Cotati
Summary of Cash and Investments for the Quarter Ended March 31, 2025 Portfolio Assets % of Portfolio
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*Note: Cash/time deposits not included in WYTM
Excludes Pooled Investments and U.S. Bank Custodial Cash Account Under 1 Year
Maturity Mar 2025 Dec 2024 Change 1 - 2 Years
3-Month 4.32% 4.37% -0.05% 2 - 3 Years
1-Year 4.03% 4.16% -0.13% 3 - 4 Years
2-Year 3.89% 4.25% -0.36% 4 - 5 Years
3-Year 3.89% 4.27% -0.38% Total
5-Year 3.96% 4.38% -0.42%
10-Year 4.23% 4.58% -0.35%
Jan
Feb
Mar 2025 Mar 2024 Mar 2023 Mar 2022 Mar
3.89% 4.59% 4.06% 2.28% Total for Quarter
Note: Interest Earnings figures do not include capital gains or losses City of Cotati
Investment Report for the Quarter Ended March 31, 2025
Investment Portfolio Summary and Key Statistics
Portfolio Key Statistics
PAR Value 14,603,149 $
U.S. Treasury Yields - Quarterly Comparison $ 32% 1,780,000 Book Value (COST) 14,562,545 $
Market Value 14,609,097 $
Weighted Average Maturity (in years) 1.39
Weighted Yield to Maturity* 4.40%
Portfolio Maturity PAR Maturing % Maturing
$ 32% 1,784,000
$ 32% 1,783,000
$ 4% 248,000
2-Year U.S. Treasury Yield - Historical Data $ 68,300 $ (18,972) 49,328 $ $ 0% -
$ 100% 5,595,000
Interest Earnings FY 23-24 FY 24-25 Change
$ 160,668 213,179 $ (52,511) $
$ 74,004 $ (16,483) 57,521 $
$ 70,875 $ (17,056) 53,819 $
59.56% 21.33%
10.34%
5.42%
2.78%
0.32%
0.22%
0.04% CAMP 59.56%
CERTIFICATE OF DEPOSIT 21.33%
FEDERAL AGENCY BOND 10.34%
U.S. TREASURY BILL/NOTE 5.42%
CASH/TIME DEPOSITS 2.78%
INVESTMENT CASH ACCOUNT 0.32%
Sonoma County Investment Pool 0.22%
LOCAL AGENCY INVESTMENT FUND 0.04%
0%
5%
10%
15%
20%
25%
30%
35%
Under 1
Year
1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years
32% 32% 32%
4%
0%
Portfolio Maturity Distribution
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City of Cotati
Summary of Fiscal Resilience Enterprise Fund Factors
As of:
General Fund:
Cash*
Budget Operating
Expenses Cash Coverage Goal
A. Cash Coverage Ratio = $ 3,677,614 $ 9,447,826 38.93% > 25% Cash* Current Liabilities** Quick Ratio Goal
B. Liquidity Ratio = $ 3,677,614 $ 385,044 9.55 > 2.00
Twelve Month
Rolling Revenues To
3/31/2025
Twelve Month
Rolling Budget
Revenues
Revenues to
Budget Goal
C.1 Rolling Twelve Months Revenue to Budget = $ 11,625,969 $ 10,371,769 12% > - 10% Fiscal Year Total
Revenues To
3/31/2025
Prior Fiscal Year
Revenues
3/31/2024
Revenues to Prior
Year
C.2 Current Fiscal Year Revenue to Prior Fiscal Year = $ 6,880,212 $ 6,571,161 5% D. Increase in Expenditures
Fiscal Year
Operating
Expenditures
3/31/2025
Budget Expenditures
(9 Months)
Expenditures to
Budget Goal
Operating Expenditures Compared to Budget $ 6,952,804 $ 7,085,870 -2% < 10% Fiscal Year
Operating
Expenditures
3/31/2025
Prior Fiscal Year
Expenditures
03/31/2024
Expenditures to
Prior Year
Operating Expenditures Compared to Prior Year $ 6,952,804 $ 6,306,325 10% E. Significant Revenue Sources Changes
Current Fiscal Year
3/31/2025
Prior Fiscal Year
3/31/2024 % Change Goal
Bradley Burns $ 1,563,776 $ 1,648,141 -5.1% > - 10%
Measure S $ 1,760,133 $ 1,825,030 -3.6%
Combined Sales Tax $ 3,323,909 $ 3,473,171 -4.3%
Property Tax $ 1,161,066 $ 1,161,066 0.0%
Current Fiscal Year
3/31/2024
Budget
(9 Months) % Change Goal
Bradley Burns* $ 1,563,776 $ 1,687,000 -7.3% > - 10%
Measure S* $ 1,760,133 $ 1,799,583 -2.2%
Combined Sales Tax* $ 3,323,909 $ 3,486,583 -4.7%
Property Tax** $ 1,161,066 $ 1,065,879 8.9%
Monday, March 31, 2025
* - Sales Tax - 7 of the 12 monthly payments have been received to date as they are received two months after the collection period they represent. ** - Property Tax - 1/2 of the annual payments have been received to date. Another payment is to be received in April with an adjustment payment in June. 535 of 539 City of Cotati
Summary of Fiscal Resilience Enterprise Fund Factors
As of:
General Fund:
Monday, March 31, 2025
F. Community Event Identification: None Noted
Fiscal Year Total
Revenues To
3/31/2025
Fiscal Year
Operating
Expenditures
3/31/2025
Current Year
Revenues to
Expenses Goal
G. Current Fiscal Year Revenues to Operating Expenditures $ 6,880,212 $ 6,952,804 99% > 110% Prior Fiscal Year
Revenues
3/31/2024
Prior Fiscal Year
Expenditures
03/31/2024
Prior Year
Revenues to
Expenses
Prior year Revenues to Operating Expenditures $ 6,571,161 $ 6,306,325 104% Ref:
* Cash incudes the pooled cash attributable to the evaluated fund which consists of all liquid available cash and investments held including CD's and Treasury notes. ** Current Liabilities are the total of all liabilities for the evaluated fund, as of the reporting date, that are due and payable within one year.
Due to timing of major revenue sources, mentioned in D above, it is consistant that the coverage for reveneus would be lower through this period to date. This will continue to be monitored for risk.
Though no indicator was noted, this will continue to be monitored. 536 of 539
City of Cotati
Summary of Fiscal Resilience Enterprise Fund Factors
As of:
Water Enterprise Fund
Cash*
Budget Operating
Expenses Cash Coverage Goal
A. Cash Coverage Ratio = $ 3,799,132 $ 2,298,542 165.28% > 33% Cash* Current Liabilities** Quick Ratio Goal
B. Liquidity Ratio: = $ 3,444,351 $ 98,743 34.88 > 2.0
Twelve Month
Rolling Revenues To
3/31/2025
Twelve Month
Rolling Budget
Revenues Revenues to Budget Goal
C.1 Rolling Twelve Months Revenue to Budget = $ 2,608,658 $ 2,350,781 11% > - 10% Fiscal Year Total
Revenues To
3/31/2025
Prior Fiscal Year
Revenues
3/31/2024
Revenues to Prior
Year
C.2 Current Fiscal Year Revenue to Prior Fiscal Year = $ 2,101,372 $ 1,773,637 18% D. Increase in Expenditures Fiscal Year
Operating
Expenditures
3/31/2025
Budget Expenditures
(9 Months)
Expenditures to
Budget Goal
Operating Expenditures Compared to Budget $ 1,657,786 $ 1,723,907 -4% < 10% Fiscal Year
Operating
Expenditures
3/31/2025
Prior Fiscal Year
Expenditures
03/31/2023
Expenditures to
Prior Year
Operating Expenditures Compared to Prior Year $ 1,657,786 $ 1,352,622 23% E. Supporting Agency Change In Rates
1-Jul-24 Goal
Budgeted Rate Agency Rate Difference < 2%
Sonoma County Water Agency (65% of supply) 6.00% 9.98% 3.9800% F.
Fiscal Year Total
Revenues To
3/31/2025
Fiscal Year
Operating
Expenditures
3/31/2025
Revenues to
Expenses Goal
Operating Revenues to Operating Expenditures $ 2,101,372 $ 1,657,786 127% > 110% Prior Fiscal Year
Revenues
3/31/2024
Prior Fiscal Year
Expenditures
03/31/2024
Prior Year Revenues
to Expenses
Prior Year Revenues to Operating Expenditures $ 1,773,637 $ 1,352,622 131% Monday, March 31, 2025
* Cash incudes the pooled cash attributable to the evaluated fund which consists of all liquid availble cash and investments held including CD's and Treasury notes. ** Current Liabilites are the total of all liabilities for the evaluated fund, as of the reporting date, that are due and payable within one year. 537 of 539
City of Cotati
Summary of Fiscal Resilience General Fund Factors
As of:
Sewer Enterprise Funds
Cash*
Budget Operating
Expenses Cash Coverage Goal
A. Cash Coverage Ratio = $ 2,807,536 $ 4,212,328 66.65% > 33% B. Cash* Current Liabilities** Quick Ratio Goal
Liquidity Ratio: = $ 2,807,536 $ 49,113 57.17 > 2.0
C.1 Twelve Month
Rolling Revenues To
3/31/2025
Twelve Month
Rolling Budget
Revenues Revenues to Budget Goal
Rolling Twelve Months Revenue to Budget = $ 3,499,184 $ 3,412,228 3% > - 10% C.2 Fiscal Year Total
Revenues To
3/31/2025
Prior Fiscal Year
Revenues
3/31/2024
Revenues to Prior
Year
Current Fiscal Year Revenue to Prior Fiscal Year = $ 2,674,066 $ 2,480,781 8% D. Increase in Expenditures Fiscal Year
Operating
Expenditures
3/31/2025
Budget Expenditures
(9 Months)
Expenditures to
Budget Goal
Operating Expenditures Compared to Budget $ 2,851,078 $ 2,800,929 2% < 10% Fiscal Year
Operating
Expenditures
3/31/2025
Prior Fiscal Year
Expenditures
03/31/2024
Expenditures to
Prior Year
Operating Expenditures Compared to Prior Year $ 2,851,078 $ 2,555,736 12% E. Supporting Agency Change In Rates
1-Jul-24 Goal
Budgeted Rate Agency Rate Difference < 2%
Santa Rosa Wastewater Treatment 9.00% 6.38% -2.6200%
F.
Total Revenues To
3/31/2025
Operating
Expenditures
3/31/2025
Revenues to
Expenses Goal
Operating Revenues to Operating Expenditures $ 2,480,781 $ 2,555,736 97% > 110% Prior Fiscal Year
Revenues
3/31/2024
Prior Fiscal Year
Expenditures
03/31/2024
Prior Year Revenues
to Expenses
Prior Year Revenues to Operating Expenditures $ 2,480,781 $ 2,555,736 97% Note:
Monday, March 31, 2025
* Cash incudes the pooled cash attributable to the evaluated fund which consists of all liquid availble cash and investments held including CD's and Treasury notes. ** Current Liabilites are the total of all liabilities for the evaluated fund, as of the reporting date, that are due and payable within one year.
This item is improving over prior year and aligned with the utility rate study. Revenues have improved in part due to the move to monthly billing which more closly ties to the cost of services rendered. This will continue to be monitored for increased risk. 538 of 539
Cotati City Council
Agenda Staff Report
Item type: INFORMATION RECEIVED AFTER THE AGENDA WAS POSTED To: City Council
Subject: INFORMATION RECEIVED AFTER THE AGENDA WAS POSTED Date: May 13, 2025
Written by: Kevin Patterson, Deputy City Clerk
Recommendation
Information or written comments pertaining to this meeting, and which was received after the agenda was posted, is attached below.
Pursuant to City Council Policy 2025-02: City Council Rules section IV A., written Communications, interested persons or their authorized representative may address the Council by written communication on any matters concerning the City’s business, or any matters over which the Council has control.
1. To be considered for inclusion in the agenda packet, such written communication shall be delivered to the Deputy City Clerk no later than 11:00 a.m. of the Wednesday the week preceding the regular Council meeting for which such written communication is intended.
2. If received after the above date and time, but no later than noon the day before the meeting, written communications received by the Deputy City Clerk shall be posted on the website by the end of that day and notification provided to the electronic Agenda mailing list by the end of the day. All written communications received by the Deputy City Clerk by 5 pm on the City Council meeting day shall be made available to the City Council and public at the City Council meeting.
City Council Policy 2025-02 is available at the online meeting portal at www.cotaticity.gov or by request from the Deputy City Clerk at 707-665-3622 or [email protected]. 539 of 539